Add Mahindra Logistics, target price Rs 465: ICICI Securities

ICICI Securities has add call on Mahindra Logistics with a target price of Rs 465. The current market price of Mahindra Logistics is Rs 450.95. Time period given by analyst is one year when Mahindra Logistics Ltd. price can reach defined target.

Mahindra Logistics Ltd., incorporated in the year 2007, is a Mid Cap company (having a market cap of Rs 3254.71 Crore) operating in Logistics sector.

Mahindra Logistics Ltd. key Products/Revenue Segments include Services Rendered for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1078.37 Crore, down -3.76 % from last quarter Total Income of Rs 1120.50 Crore and up 10.19 % from last year same quarter Total Income of Rs 978.65 Crore. Company reported net profit after tax of Rs 11.11 Crore in latest quarter.

Investment Rationale
MLL expects significant improvement in gross margins in end-to-end solutions contract with
maturity (12-18 months); reiterated FY26 revenue target of Rs100bn and a significant improvement in profitability concurrently. The brokerage maintains ADD on MLL with a revised target price of Rs465 (earlier: Rs550/share).

Promoter/FII Holdings
Promoters held 58.18 per cent stake in the company as of 31-Mar-2022, while FIIs owned 20.39 per cent, DIIs 12.13 per cent.